P-Com, which has been struggling financially, is supposed to pay Agilent $1.725 million on Dec. 1. However, under the revised agreement, P-Com will pay Agilent $250,000 on Dec. 1 and will pay the balance over a 16-month period that starts in January 2005. P-com said this move would provide "additional flexibility" in addressing working capital needs.

In conjunction with the Agilent announcement, P-Com also said that it has completed the first closing in a $5 million debenture financing round. P-Com issued $3.3 million in debentures in the first closing. Specifically, debenture holders were issued 528,000 shares of common stock with an exercise price of $1.50 per share.